Investing

Buy These 7 Dividend Stocks and Hold Forever

Lee Jackson

Published: July 2, 2024 10:10 am

Last Updated: July 2, 2024 4:12 pm

24/7 Insights

• Quality dividend stocks outperform non-dividend stocks for shareholders.
• Dividend stocks can deliver dependable passive income streams.
• Access 2 legendary, high-yield dividend stocks Wall Street loves.

Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations.

A study from the Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past half-century (1973-2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

One of the critical advantages of dividend stocks is their ability to generate passive income. This type of income, which continues to flow without continuous active effort, is an attractive financial strategy for those looking to diversify their income streams or achieve financial independence.

We screened our 24/7 Wall St. quality dividend research database, looking for companies that investors can buy now, put into their regular or retirement accounts, and hold forever. All seven are dominant players in the respective sectors, have an extensive moat to keep the competition at bay, and are all rated Buy at top Wall Street firms. 

Coca-Cola

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This company remains a top Warren Buffet holding as he owns a massive 400 million shares, 9.3% of the float and 6.4% of the portfolio. Coca-Cola Co. (NYSE: KO) is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands.

Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the company’s portfolio features 20 billion-dollar brands, including:

• Diet Coke
• Fanta
• Sprite
• Coca-Cola Zero
• Vitaminwater
• Powerade
• Minute Maid
• Simply
• Georgia
• Del Valle

Globally, it is the number one provider of sparkling beverages, ready-to-drink coffees, and juice drinks.

Through the world’s most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of more than 1.9 billion servings a day. It’s also important to remember that the company owns almost 20% of Monster Beverage (NASDAQ: MNST), which continues to deliver big numbers.

Investors are paid a very dependable 3.04% dividend.

Comcast

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This top media and entertainment company remains a Wall Street favorite and pays a solid 3.18% dividend. Comcast Corp. (NYSE: CMCSA) is a media and technology company worldwide.

It operates through four segments:

• Residential Connectivity & Platforms
• Business Services Connectivity
• Media, Studios
• Theme Parks segments

The Residential Connectivity & Platforms segment provides residential broadband and wireless connectivity services, residential and business video services, sky-branded entertainment television networks, and advertising.

The Business Services Connectivity segment offers connectivity services for small business locations, which include broadband, wireline voice, and wireless services, as well as solutions for medium-sized customers and larger enterprises and small business connectivity services in the United Kingdom.

The Media segment operates NBCUniversal’s television and streaming business, including:

• National and regional cable networks
• The NBC and Telemundo broadcast networks
• Owned local broadcast television stations
• Peacock, a direct-to-consumer streaming service

It also operates international television networks comprising the Sky Sports networks and other digital properties.

The Studios segment operates NBCUniversal and Sky film and television studio production and distribution operations.

The Theme Parks segment operates Universal theme parks in:

• Orlando, Florida
• Hollywood, California
• Osaka, Japan
• Beijing, China

Dominion Energy

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Many of the Wall Street firms we cover are still very positive on utilities despite the sharp move higher this year, and this company pays a strong 5.01% dividend.

Dominion Energy Inc. (NYSE: D) operates through four segments:

• Dominion Energy Virginia
• Gas Distribution
• Dominion Energy South Carolina
• Contracted Assets

The Dominion Energy Virginia segment generates, transmits, and distributes regulated electricity to residential, commercial, industrial, and governmental customers in Virginia and North Carolina.

The Gas Distribution segment engages in:

• Regulated natural gas gathering
• Transportation
• Distribution and sales activities 
• Distributes nonregulated renewable natural gas

This segment serves residential, commercial, and industrial customers.

The Dominion Energy South Carolina segment:

• Generates
• Transmits
• Distributes electricity and natural gas to residential, commercial, and industrial customers in South Carolina. 

The company’s portfolio of assets included approximately:

• 30.2 gigawatts of electric generating capacity
• 10,500 miles of electric transmission lines
• 85,600 miles of electric distribution lines
• 94,200 miles of gas distribution lines
• Dominion serves approximately 7 million customers. 

Exxon Mobil

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The slow decline in oil prices offers investors an excellent entry point, and they will gladly grab a strong 3.37% dividend. Exxon Mobil Corp. (NYSE: XOM) is the world’s largest international integrated oil and gas company, exploring for and producing crude oil and natural gas in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania.

Exxon Mobil also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products; and transports and sells crude oil, natural gas, and petroleum products.

Top Wall Street analysts expect the company to remain a key beneficiary in a higher oil price environment, and most remain very optimistic about the company’s sharp positive inflection in capital allocation strategy.

Upstream portfolio and leverage to a further demand recovery. Exxon Mobil offers greater Downstream/Chemicals exposure relative to peers.

Exxon Mobil has completed its purchase of oil shale giant Pioneer Natural Resources Company in a $59.5 billion all-stock purchase. The deal created the largest U.S. oilfield producer and guarantees a decade of low-cost production. 

Home Depot

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With the potential for a second-half 2024 recession and still-high mortgage interest rates and home prices, people will likely stay put, and this is the top retailer to own now, which pays a solid 2.75% dividend. Home Depot Inc. (NYSE: HD) operates as a home improvement retailer. It sells various:

• Building materials
• Home improvement products
• Lawn and garden products
• Décor products
• Facilities maintenance, repair, and operations products

Home Depot’s offerings extend beyond products. The company also provides a wide range of installation services for:

• Flooring
• Water heaters
• Baths
• Garage doors
• Cabinets
• Cabinet makeovers
• Countertops
• Sheds
• Furnaces
• Central air systems
• Windows

It further enhances its customer experience with tool and equipment rental services. This diverse portfolio of products and services positions Home Depot for potential growth and resilience in the market.

Home Depot primarily serves:

• Homeowners and professional renovators/remodelers
• General contractors
• Maintenance professionals
• Handypersons
• Property managers
• Building service contractors
• Specialty tradespeople, such as electricians, plumbers, and painters

It also sells its products through websites, including homedepot.com, homedepot.ca, and homedepot.com.mx; blinds.com, an online site for custom window coverings; and thecompanystore.com, an online site for textiles and décor products, as well as through The Home Depot stores.

Merck

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This company is a steadfast health care stock for conservative investors and offers a reliable 2.36% dividend. Merck & Co. Inc. (NYSE: MRK) is a health care company with a global presence, operating through two segments: Pharmaceutical and Animal Health.

The Pharmaceutical segment offers human health pharmaceutical products in:

• Oncology
• Hospital acute care
• Immunology
• Neuroscience
• Virology
• Cardiovascular
• Diabetes
• Vaccine products, such as preventive pediatric, adolescent, and adult vaccines

The Animal Health segment discovers, develops, manufactures, and markets veterinary pharmaceuticals, vaccines, health management solutions and services, and digitally connected identification, traceability, and monitoring products.

Merck serves:

• Drug wholesalers
• Retailers
• Hospitals
• Government agencies
• Managed health care providers, such as health maintenance organizations
• Pharmacy benefit managers, and other institutions
• Physicians
• Physician distributors
• Veterinarians
• Animal producers

The company collaborates with AstraZeneca PLC (NYSE: AZN), Bayer AG, Eisai Co., Ltd., Ridgeback Biotherapeutics, and Gilead Sciences Inc. (NASDAQ: GILD) to jointly develop and commercialize long-acting treatments for HIV.

Five Ultra-Yield Dividend Stocks to Buy Hand Over Fist

Procter & Gamble

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Procter & Gamble Co. (NYSE: PG) is one of the world’s largest consumer products companies. It offers substantial dividends and has very recognizable products. 

Proctor & Gamble operates under five segments:

• Beauty
• Grooming
• Health Care
• Fabric & Home Care
• Baby & Family Care

Brands include:

• Pampers
• Tide
• Bounty
• Charmin
• Gillette
• Oral B
• Crest
• Olay
• Pantene
• Head & Shoulders
• Ariel
• Gain
• Always
• Tampax
• Downy
• Dawn

P&G sells its products through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores, high-frequency stores, and pharmacies.

The company has been innovative in its product development process and uses that to help ensure future growth and cash flow. This should provide investors with years of steady growth and dividends.

Shareholders are paid a very dependable 2.41% dividend.